All eyes are on the Central Statistics Office (CSO) which is expected to release on Thursday the country’s GDP growth rate for the October-December quarter and the second advance estimate for 2018-19. A majority of economists, as per a poll by Reuters, have forecast that the growth rate is likely to further decelerate in the third quarter, and pegged it at 6.7-6.9% against 8.2% posted during the first quarter and 7.1% during the second.

The poll has suggested that the weaker rural incomes and subdued urban demand have pushed down the economic growth to its slowest pace in over a year in the third quarter. The economists have blamed it on the tight liquidity situation persisted through most of the quarter and farm distress that impeded the rural consumption. Global uncertainties over trade conflicts, Brexit and oil prices are other prime reasons.

Now everyone is pinning their hope on the government’s recent decision to introduce several tax cuts. Serious efforts are currently on to prop up spending and growth. Going forward, the Reserve Bank of India’s (RBI) sudden dovish turn in the recent monetary policy review, when it slashed the rate by 25 basis points and changed its policy stance to 'neutral' after a sharp fall in inflation, could help push growth.